While most people must finance, in order to be able to purchase a home, there are some who have the funds, to make a cash deal . It might be that the property is relatively inexpensive, they are down – sizing, have recently sold another house, or have lots of other liquid assets. While some may counsel to reduce debt, and in most forms of debt in Noble Oklahoma 73068, I would agree, there are many reasons this advice does not apply to a home loan, or mortgage. Let’s review 5 advantages of carrying a mortgage, while realizing the major reason not to, is reducing one’s monthly carrying charges/ fixed expenses.
1. Opportunity cost of money: Many have heard this expression, but fail to fully realize what it means, or don’t believe it applies to them. Ask yourself, might it make more sense, to maintain one’s funds, and invest them separately, and take out a mortgage. Especially today, when mortgage interest rates still remain close to historic lows, borrowing permits one to purchase more house than he might otherwise be able to. In addition, might it not make sense, to diversify one’s portfolio in Noble Oklahoma 73068, and position himself for a brighter financial future? Many factors might impact this decision, including: one’s comfort zone; future plans; age; personal situation; expectations; and anticipated future needs. However, it is important to keep in mind this essential, opportunity cost of money!
2. Cash flow: If you are paying 4.5% as your mortgage rate, and effectively paying quite a bit less because of tax considerations, and you believe you can, over time, generate more from your investments, doesn’t a mortgage make sense. If you aren’t sure, you can always make a larger downpayment, or add additional principal paybacks to your monthly payment, and still enjoy some of the benefits.
3. Tax deductible/ tax advantages: Mortgage interest is tax deductible, and thus costs you considerably less than any other form of loan. Reduce your other debts with higher, non – deductible interest, while carrying a mortgage. If you are in the 30% tax bracket, for example, your effective interest rate on a 4.5% mortgage is only 3.15%, etc.
4. Escrow: When you have a mortgage, most lending institutions will also charge and keep an escrow account, in order to pay the real estate taxes, insurance, etc. You won’t have to worry about remembering to make a real estate tax payment, and getting a late charge/ penalty, because the loaner will pay this out of your account. And. your escrow account will even receive dividends on the balance in Noble Oklahoma 73068.
5. You can pre – pay: Many ask if they should carry a 30 – year or, for example, a 15 – year mortgage period. My suggestion for most, is to take out the longer – term, so you have the ability to pay the lower amount monthly, but make additional principal payments (e.g. add $100 per payment), to reduce the payback period. There is no pre – payment penalty for the vast majority of mortgages!
Understand mortgages, and your mortgage options, from the onset in Noble Oklahoma 73068. Do what makes the most sense for you!
Surrounding Areas In Oklahoma
Video: Mortgages in Noble OK
Homes.com Noble, OK Real Estate: Search land for sale and MLS listings in Noble, Oklahoma. Local information: 106 houses for sale with 15 parcels of land for sale.
Homes.com has 112 property listings in Noble, Oklahoma. Find real estate, houses for sale, and MLS listings in Noble. Research properties, neighborhoods, schools ...
Recording Office: Real property transactions, deeds, mortgages, etc. Oil & Gas transactions Subdivision Plats Liens: court judgments, mechanics liens, physicians ...
Welcome to the newly created web site for the Noble County Auditor's Office. Jackie Knafel (Auditor) and the staff of our office are pleased that you are visiting ...
Noble County, Indiana Government Website ... Contacts and Locations. Need a phone number, address or map for a County Office?
Welcome to Noble County Courts Website. COURT HOURS 8:00 a.m. to 4:00 p.m. CHECK THE STATUS OF YOUR CASE. Noble County Courts © Copyright 2007. All rights reserved.
The data and images hosted on this website do not belong to KellPro. All data and images belong to the respective county clerk offices.
Zillow has 29 photos of this $773900 5 bed, 6.0 bath, 4400 sqft single family home located at 2644 Smoking Oak Rd built in 1969. MLS # 770504.
Zillow has 73 photos of this $1450000 5 bed, 6.0 bath, 7309 sqft single family home located at 14300 Thornhill Dr built in 2000. MLS # 749510.
Search a map of all Oklahoma cities with a complete list of all cities and towns with Livability Scores.